Key Factors Which Impact on Real Estate Market

Key factors which impact on real estate marketAs on each market on the real estate market the main factors which determines the price are supply and demand, but let looks particularly on the factors which affect on the supply and demand, they are: credit interest rate; rate of unemployment; growth of GNP; inflation; real estate market; bureaucracy in building sphere

Interest rateInterest rates of interbank, have as profound an effect on the value of income-producing real estate as on any investment vehicle. Because the influence of interest rates on an individual's ability to purchase residential properties (by increasing or decreasing the cost of mortgage capital) is so profound, many people incorrectly assume that the only deciding factor in real estate valuation is the mortgage rate. However, mortgage rates are only one interest-related factor influencing property values. Because interest rates also affect capital flows, the supply and demand for capital and investors' required rates of return on investment, interest rates will drive property prices in a variety of ways. A 1% reduction in the short-term interest rates is associated with ½ to 1 1/2% increases in house prices within a year. The effect is strongest in Canada and the Netherlands, weakest in the U.S. and the UK. Rate of unemployment

It is easy to understand that a person without a job will be unable to purchase a house. Therefore, as unemployment rises, potential purchasers are removed from the market resulting in a decrease in demand.

GNP'Objective' factors only explain a portion of house price rises and falls. Much of the rest is cyclical, and is explained by the market's own history. Changes in macro-economic variables do (also) tend to impact house prices. Increases in national income (GNP). In a recent BIS six-country study (US, Canada, UK, Australia, Netherlands and Ireland) a 1% increase in GNP growth was associated with a 1-4% rise in real house prices after three years....

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...Factors That Influence RealEstate
1. Demographics
Demographics are the data that describes the composition of a population, such as age, race, gender, income, migration patterns and population growth. These statistics are an often overlooked but significant factor that affects how realestate is priced and what types of properties are in demand. Major shifts in the demographics of a nation can have a large impact on realestate trends for several decades.
For example, the baby boomers who were born between 1945 and 1964 are an example of a demographic trend with the potential to significantly influence the realestatemarket. The transition of these baby boomers to retirement is one of the more interesting generational trends in the last century, and the retirement of these baby boomers, which began back in 2010, is bound to be noticed in the market for decades to come. (For more on the baby-boomer trend, see Boomers: Twisting The Retirement Mindset.) There are numerous ways this type of demographic shift can affect the realestatemarket, but for an investor, some key questions to ask might be: i) How would this affect the demand for second homes in popular vacation areas as more people start to retire? Or ii) How...

...restrict the use of the realestate in some way, and are listed in the deed. The seller may add a restriction to the title of the property. A deed restriction is a clause in a deed that limits the use of land. Deed restrictions placed within a deed control the use of the property.
Estate:-Estates are all of the valuable things an individual owns, such as realestate, art collections, collectibles, antiques, jewelry, investments and life insurance.
Estate for Years:-The most significant feature of an estate for years is that it must be of definite duration, that is, it is required to have a definite beginning and a definite ending.
Estate from Year to Year:-The essential distinguishing characteristic of an estate from year to year is that it is of indefinite duration.
Fee Simple Estate:-In English law, a fee simple estate is an estate in land, a form of freehold ownership. It is the way that realestate is owned in common law countries, and is the highest ownership interest possible that can be had in real property. The property owner is entitled to full enjoyment of the property, limited only by zoning laws, deed or subdivision restrictions or covenants.
Freehold Estate:-A freehold estate is one where the duration of...

...3
External Factors and the RealEstate Industry
By
Karen Chapman
11 November 2012
Assignment 1.3
Index:
1. The demographic environment:
1.1 Cultural diversity trends and developments Page 3
1.2 Demographics of own area, vs. national demographics and trends Page 3
2. The economic environment:
2.1 The current economic environment Page 3
2.2 Socio-economic factors Page 4
3. The political environment Page 4
4. The technological environment Page 5
5. The competitive environment Page 5
6. The legal environment:
6.1 Regulations pertaining to property ownership Page 5
6.2 Regulations pertaining to land use controls Page 6
6.3 Other rules and regulations Page 6
Conclusion Page 6
References Page 6
Assignment 1.3
Introduction:
The realestate industry is hugely affected by external factors, which have the effect of either having a positive or negative impact on us as realestate agents. When the economy is good houses sell and buyers are able to qualify for bonds. When the economy is in a downturn then houses stay on the market for a lot longer. Buyers are more reluctant to take the plunge and buy property. Repossessions increase and banks often...

...Table of Contents
Market Analysis
Forecast Population Growth to 2025 2
Housing Affordability, Average Sales Price and Growth 4
Housing Characteristics 6
Society and Ambiance 6
The age distribution 7
Types of households 8
Educational attainment 9
Economic Outlook 10
Unemployment Rates & Employment growth 10
Household income 11
Capital Improvement Program 12
Market Analysis
1. Forecast Population Growth to 2025
Collin County is one of about 3,141 counties and county equivalents in the United States. It has 847.6 sq. miles in land area and a population density of 704.5 per square mile.
Growth in population and employment is a primary reason for increased congestion in the Nation's metropolitan areas. The Country has grown in population and employment in recent years, and will most likely continue doing so. The 2000 Census revealed 281 million people living in the United States, which...

...»Realestate – Rental sector«
1. RealEstateMarket in Germany:
The realestate industry is one of the largest sectors of the German economy. More than 700,000 German companies are active in the realestate industry and employ around 3.8 million people, comprising 22% share of all businesses and 10% of Germany’s workforce. The gross value added of the realestate economy totaled 406 billion € in 2007, which equals a share of 18.7% of Germany’s gross value added. Housing and residential buildings are a significant section of the realestate stock. In 2007, around 82 million people were living in almost 40 million residential units (Maeining, 2012).
A special characteristic of the German realestatemarket is its robust residential rental sector. More than 39 million people and around 57% of private households in Germany live in rented housing; more than in almost any other European country.
During the recent global economic crisis the realestate sector in Germany served a stabilizing role. Residential rents rose by about 1% as in previous years and realestate prices decreased slightly. (Maening, 2012)
2. RealEstateMarket in...

...﻿0.0 The impact of External Environmental Factors and CSR on the RealEstate and Construction Industry in the Russian Federation
0.1 Question 1: The PESTEL analysis of the external environmental factors affecting the realestate and construction industry in the Russian Federation (RF) and how key drivers for change in the future, together with their potential impact on the industry.
Question 2: Analyzing the impact of CSR on the realestate and construction industry in the RF and evaluating how CSR might give industry players a competitive advantage.
0.2 For: CEM Assignments Office
Date: 29/01/2014
0.3 From: Deniz Berkan Unsal
Moscow, Russian Federation
1.0 Summary
Today, Russia represents a real meeting point of the socialist and liberalist thoughts. Therefore, Russia has its own characteristic external environment, which is really complicated to examine for the foreigners. Furthermore, the newborn Russia’s change still continues quite faster than the developed countries. The international players endeavor for receiving a reasonable share from this dynamic and unique market.
Russia demonstrates the evidences of change with its infrastructural investments. The realestate and construction industry plays an indicator role...

...﻿THE TECHNICAL REPORT ON STUDENT INDUSTRIAL WORK EXPERIENCE SCHEME (SIWES)
AT
BABATUNDE AND COMPANY, REGISTERED ESTATE SURVEYORS AND VALUER SANBEL HOUSE, BOSSO ROAD, P.O BOX 2956, MINNA, NIGER STATE.
BY
OLATONA FUNMILAYO GRACE
2010/2/36221MM
ESTATE MANAGEMENT DEPARTMENT
SUBMITTED TO THE
DEPARTMENT OF ESTATE MANAGEMENT, SCHOOL OF
ENVIRONMENTAL TECHNOLOGY, FEDERAL UNIVERSITY OF TECHNOLOGY, MINNA
10TH APRIL, 2014
DEDICATION
I dedicate this work to Almighty God, the most high, the beginning and the end, the creator of heaven and earth, who made it possible and see me through the period of my I T and also to my beloved brother who make it a duty to finance my education, not only did I say thank you but I am forever indebted to you.
ACKNOWLEDGEMENT
I am deeply grateful to God almighty for his grace love protection mercy provision kindness and salvation over my life during the period of my Industrial Training.
I want to acknowledge the effort of Mr. Jide Isaiah Babatunde and the entire staff and management of Babatunde and co for the love, care, support and privileged given to me during my Industrial Training.
I want to acknowledge the pains-taking effort of my brother, family and finally, my sincere thanks go to all my friends and classmates for their love, encouragement and motivation. And to all members of Ushering Unit Fellowship of Christian Students FUT. Minna, thank...

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One reason for this might be that Stock Market depends on the overall health of the Economy, and real Economic variables which tend to display persistence. Therefore, an interesting question in finance is: what derives stock market volatility? Understanding the nature of stock market volatility gives some important implications for policy makers, economic forecasters and investors.
Studying the impact of MacroEconomic factors such as Inflation, Interest Rate, Dollar Value and FII on conditional stock market volatility also has important implications for investors and policymakers. In many ways the performance of the economy influences the success of the stock market and vice versa. Irving Fisher found that real interest rates were equal to nominal interest rates minus expected inflation. This MacroEconomic relationship is known as the Fisher Effect (Mankiw, 1997). So, the understanding of impact of Fisher effect on stock market index through stock volatility can broaden our understanding of such risks allowing it to be priced more efficiently.
The relationship between Microeconomic variables and Share Price Movement has dominated both academician's and practitioner’s literature in recent times. It is believed that government financial policy and Microeconomic...